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HomeMy WebLinkAbout1999-12-07; City Council; 15513; Renew Contract For Human Resources DepartmentClxV OF CARLSBAD - AGEMA BILL RENEWING CONSULTANT CONTRACT FOR THE HUMAN RESOURCES DEPARTMENT RECOMMENDED ACTION: City Council adopt Resolution No. 99-508 ratifying this consultant contract. ITEM EXPLANATION: The Human Resources Department requires the professional expertise of Towers Perrin, an employee benefits consulting firm which has the requisite knowledge and skills to advise the City on its group benefit programs. This contract renewal is necessary to ensure that a current contract is in place with Towers Perrin. Towers Pen-in has been the exclusive benefits consulting firm for the City of Carlsbad since 1987. As such, Towers Perrin consultants advise the City on such matters as health insurance funding, plan design, cost containment strategies, flexible benefits, benefit rate negotiations and other issues related to the City’s health and welfare benefit plans. The contractual term of service between the City and Towers Perrin expired on June 30, 1999. It is the recommendation of staff that the contract with Towers Perrin be ratified and that Towers Perrin remain as the City’s benefit consulting firm for the following reasons: 1. An important consideration at this juncture is continuity of service. The City has just concluded an extensive health benefits task force project, and Towers Perrin is assisting the City in evaluating its current health insurance providers. 2. Towers Perrin has been working in this capacity with the City for over twelve years. Retaining Towers Pen-in will take advantage of the firm’s familiarity with this organization and the City’s established knowledge of their services. 3. Towers Perrin is a well respected consulting firm. The company has experience with both private and public sector programs, and understands the particular requirements of public agency clients such as the City of Carlsbad. The Purchasing Officer has waived the requirement for multiple proposals under Carlsbad Municipal Code Section 3.28.150, and has approved the duration of the contract which will allow the City to use the services of Towers Pen-in for a period of three (3) years. If desired, the City Manager will have the authority to extend the contract for two additional one (1) year periods. Therefore, it is staffs recommendation that the City Council ratify the work performed by Towers Perrin from July 1, 1999 to date and approve the agreement with Towers Perrin to continue providing benefit consulting services. With the exception of a slight increase in contractor fees, no significant changes to this contract have been made since it was last renewed four years ago. This agreement is ongoing and may be modified by mutual agreement of the parties. This contract shall be terminable by either party upon thirty (30) days written notice. - PAGE 2 OF AB # 15,513 FISCAL IMPACT: The action will have no specific fiscal impact. The City has been conducting business with this firm for a number of years. The funds for these services of $95,000 have been included in the departmental operating budget for fiscal year 1999/2000. EXHIBITS: 1. Resolution No. 99-508 . 2. Signed contract with Towers Pen-in RESOLUTION NO. 99-508 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 3 CARLSBAD, CALIFORNIA, APPROVING AN AGREEMENT FOR HUMAN RESOURCES CONSULTING SERVICES. 4 5 WHEREAS, the City Council has determined that it is desirable and necessary to 6 retain professional group benefit consulting services, and 7 WHEREAS, the contract with Towers Pen-in for such services expired on June 30, a 1999; and 9 10 WHEREAS, staff is recommending that Towers Pen-in continue to be retained as the 11 City’s health benefit consulting firm; and 12 WHEREAS, Towers Pen-in has continued to provide such services in the interim. 13 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of 14 Carlsbad, California, as follows: 15 16 1. That the above recitation is true and correct. 17 2. That the City Council approves Towers Pen-in as the City’s health benefits 18 consulting firm effective July 1, 1999. 9 19 3. That the City Council ratifies the attached contract with Towers Perrin to provide 20 health benefit consulting services. This is a three (3) year contract, and the City Manager is 21 given the authority to extend this agreement for two additional one (1) year periods. I 22 /II 23 /I/ 24 /I/ 25 26 Ill 27 /I/ 28 4. That funds are available in the Human Resources Department budget for fiscal year 1999/2000. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council of the City of Carlsbad, California, on the 7th &yofDECEMBER , 1999, by the following vote, to wit: AYES: Council Members Lewis, Hall, Finnila, Nygaard, Kulchin NOES: None ABSENT: None ATTEST: nt City Clerk AGREEMENT - THIS AGREEMENT is made and entered into as of the /z/;ci day of Y , 192, by and between the CITY OF CARLSBAD, a municipal corporation, hereinafter referred to as “City”, and Tower Perrin, a corporation, hereinafter referred to as “Contractor.” RECITALS City requires the services of a group benefits consultant; Contractor to provide the necessary professional services for the ongoing review of the City’s health benefits programs; and Contractor possesses the necessary skills and qualifications to provide the services required by the City; NOW, THEREFORE, in consideration of these recitals and the mutual covenants contained herein, City and Contractor agree as follows: 1. CONTRACTOR’S OBLIGATIONS a. Contractor will examine the specific elements of the City’s group benefits program, including: Funding (i.e., funding of reserves, etc.) Plan design Cost-containment initiatives Eligibility provisions Flexible benefits rev. 2/26/99 -1 - Claims administration HMO/prepaid plan strategy Retiree coverage Wellness Employee communications b. Contractors’ responsibilities will include the following accomplishments: Meet with City Human Resources staff and bargaining unit representatives to review overall philosophy of funding, plan design, employee(er) contributions, employee relations, etc. Gather necessary data from the City and insurance carriers. Evaluate current arrangements. C. Develop alternative funding and design options. Prepare recommendations. Contractors will address the following specific issues: What alternative funding arrangements are available and how do these costs compare with the current arrangement? Should the funding method include some type of risk transfer, such as specific and aggregate stop-loss? What type of plan changes would be appropriate in view of the employee relations environment? What plan design incentives would encourage employees to use the City’s benefit programs more cost-effectively? rev. 2/26/99 -2 - - Should the deductible and coinsurance features be modified? Should eligibility provisions be modified? What level of employee contribution is appropriate? What analytical data on plan utilization will be available to assist the City in establishing cost-containment priorities? Is the current Preferred Provider Organization (PPO) currently providing effective discounts? Are the current Long-Term Disability (LTD) and sick leave programs operating cost-effectively? How will current legislation affect the employee benefits programs? How can employee communications be designed to improve employee understanding and appreciation of the plans to enhance cost-effectiveness? Are the rates of the current voluntary life and Accidental Death and Dismemberment (AD&D) programs competitive? 2. CITY OBLIGATIONS The City shall provide any documents that are necessary for Contractor to complete their scope of work. rev. 2/26/99 -3 - 3. PROGRESS AND COMPLETION The work under this contract will begin within ten (10) days after receipt of notification to proceed by the City and be completed within 30 calendar days of that date. Extensions of time may be granted if requested by the Contractor and agreed to in writing by the Human Resources Director. The Human Resources Director will give allowance for documented and substantiated unforeseeable and unavoidable delays not caused by a lack of foresight on the part of the Contractor, or delays caused by City inaction or other agencies’ lack of timely action. 4. FEES TO BE PAID TO CONTRACTOR The total fee payable for the services to be performed shall not exceed ninety- five thousand dollars ($95,000) for the July 1999 - June 2000 fiscal year. Service shall be billed at the following hourly rates: Actuary (Contractor) $315 ’ Contractor $285 Contractor Specialist $205 Actuarial Specialist $180 Secretarial $135 Incidental expenses will be itemized and are not included in the contracted daily rate. The cost of the individual projects (i.e. total number of hours at a given hourly rate) shall be agreed upon by the City and Contractor prior to beginning work on each project. Additional administration fees of 6.5% will be included in all project budgets submitted by the Contractor. rev. 2/26/99 -4 - Payments will be made by the City upon monthly billings to be submitted by Contractor documenting hours spent on this project and reimbursable costs. Contractor adjusts the hourly rate of its consultants and other staff members on an annual basis. The hourly rates outlined above will be subject to change on July 1 of each year of the agreement. Contractor may also require other Towers Perrin contractors (other than those mentioned above) to perform services for the City. Their hourly rates will be negotiated with the City before any work is started. In the same way, the total “not to exceed” amount of this contract may be adjusted annually by the Human Resources Director, in accordance with the amount approved by the City Council in the annual budget. 5. DURATION OF CONTRACT This agreement shall extend for a period of three (3) years from date thereof. The contract may be extended by the City Manager for two (2) additional one (1) year periods or parts thereof, based upon a review of satisfactory performance and the City’s needs. The parties shall prepare extensions in writing indicating effective date and length of the extended contract. 6. PAYMENT OF FEES Payment of approved items on the invoice shall be mailed to the Contractor within 30 days of receipt of the invoice. rev. 2/26/99 -5 - 4 7. FINAL SUBMISSIONS Within fifteen (15) days of completion and approval of the Human Resources Director the Contractor shall deliver the required work to the City. 8. CHANGES IN WORK If, in the course of the contract, changes seem merited by the Contractor or the City, and informal consultations with the other party indicate that a change in the conditions of the contract is warranted, the Contractor or the City may request a change in contract. Such changes shall be processed by the City in the following manner: A letter outlining the required changes shall be forwarded to the City by Contractor to inform them of the proposed changes along with a statement of estimated changes in charges or time schedule. A Standard Amendment to Agreement shall be prepared by the City and approved by the City according to the procedures described in Carlsbad Municipal Code Section 3.28.172. Such Amendment to Agreement shall not render ineffective or invalidate unaffected portions of the agreement. 9. COVENANTS AGAINST CONTINGENT FEES The Contractor warrants that their firm has not employed or retained any company or person, other than a bona fide employee working for the Contractor, to solicit or secure this agreement, and that Contractor has not paid or agreed to pay any company or person, other than a bona fide employee, any fee, commission, percentage, brokerage fee, gift, or any other consideration contingent upon, or resulting from, the award or making of this agreement. For breach or violation of this warranty, the City shall have the right to annul this agreement without liability, or, in its discretion, -6 - rev. 2/26/99 Z to deduct from the agreement price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fees, gift, or contingent fee. 10. NONDISCRIMINATION CLAUSE The Contractor shall comply with the state and federal laws regarding nondiscrimination. 11. TERMINATION OF CONTRACT In the event of the Contractor’s failure to prosecute, deliver, or perform the work as provided for in this contract, the City Manager may terminate this contract for nonperformance by notifying the Contractor by certified mail of the termination of the Contractor. The Contractor, thereupon, has five (5) working days to deliver said documents owned by the City and all work in progress to the Human Resources Director. The Human Resources Director shall make a determination of fact based upon the documents delivered to City of the percentage of work which the Contractor has performed which is usable and of worth to the City in having the contract completed. Based upon that finding as reported to the City Manager, the Manager shall determine the final payment of the contract. This agreement may be terminated by either party upon tendering thirty (30) days written notice to the other party. In the event of such suspension or termination, upon request of the City, the Contractor shall assemble the work product and put same in order for proper filing and closing and deliver said product to City. In the event of termination, the Contractor shall be paid for work performed to the termination date; however, the total shall not exceed the lump sum fee payable under paragraph 4. The -7 - rev. 2/26/99 City Manager shall make the final determination as to the portions of tasks completed and the compensation to be made. 12. CLAIMS AND LAWSUITS The Contractor agrees that any contract claim submitted to the City must be asserted as part of the contract process as set forth in this agreement and not in anticipation of litigation or in conjunction with litigation. The Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and the Contractor may be subject to criminal prosecution. The Contractor acknowledges that California Government Code sections 12650 et sea., the False Claims Act, provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of information. If the City of Carlsbad seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorney’s fees. The Contractor acknowledges that the filing of a false claim may subject the Contractor to an administrative debarment proceeding wherein the Contractor may be prevented to act as a Contractor on any public work or improvement for a period of up to five years. The Contractor acknowledges debarment by another jurisdiction is grounds for the City of Carlsbad to disqualify the Contractor from the selection process. (Initial) The provisions of Carlsbad Municipal Code sections 3.32.025, 3.32.026, 3.32.027 and 3.32.028 pertaining to false claims are incorporated herein by reference. (Initial) rev. 2/26/99 -8 - 13. JURISDICTION The Contractor agrees and hereby stipulates that the proper venue and jurisdiction for resolution of any disputes between the parties arising out of this agreement is San Diego County, California. 14. STATUS OF THE CONTRACTOR The Contractor shall perform the services provided for herein in Contractor’s own way as an independent Contractor and in pursuit of Contractor’s independent calling, and not as an employee of the City. Contractor shall be under control of the City only as to the result to be accomplished, but shall consult with the City as provided for in the request for proposal. The persons used by the Contractor to provide services under this agreement shall not be considered employees of the City for any purposes whatsoever. The Contractor is an independent Contractor of the City. The payment made to the Contractor pursuant to the contract shall be the full and complete compensation to which the Contractor is entitled. The City shall not make any federal or state tax withholdings on behalf of the Contractor or its employees or subcontractors. The City shall not be required to pay any workers’ compensation insurance or unemployment contributions on behalf of the Contractor or its employees or subcontractors. The Contractor agrees to indemnify the City within 30 days for any tax, retirement contribution, social security, overtime payment, unemployment payment or workers’ compensation payment which the City may be required to make on behalf of the Contractor or any employee or subcontractor of the Contractor for work done under this rev. 2/26/99 -9 - agreement or such indemnification amount may be deducted by the City from any balance owing to the Contractor. The Contractor shall be aware of the requirements of the Immigration Reform and Control Act of 1986 and shall comply with those requirements, including, but not limited to, verifying the eligibility for employment of all agents, employees, subcontractors and Consultants that are included in this agreement. 15. CONFORMITY TO LEGAL REQUIREMENTS The Contractor shall cause all drawings and specifications to conform to all applicable requirements of law: federal, state and local. Contractor shall provide all necessary supporting documents, to be filed with any agencies whose approval is necessary. The City will provide copies of the approved plans to any other agencies. 16. OWNERSHIP OF DOCUMENTS The Services that the Contractor performs, together with the work product it delivers to the City in connection with this engagement, are provided for the purpose of assisting the City in the management of its business operations. The City will own any copies of the work product delivered to it and will have the right to use, reproduce and adapt such work product for that purpose. The City will retain ownership of any information specific to its employees or business operations contained in the work product. In the event this contract is terminated, a copy of all documents, plans, specifications, drawings, reports , and studies shall be delivered forthwith to the City. rev. 2/26/99 -10 - 17. HOLD HARMLESS AGREEMENT Contractor agrees to indemnify and hold harmless the City of Carlsbad and its officers, officials, employees and volunteers from and against all claims, damages, losses and expenses including attorneys fees arising out of the performance of the work described herein caused by any willful misconduct, or negligent act or omission of the contractor, any subcontractor, anyone directly or indirectly employed by any of them or anyone for whose acts any of them may be liable. 18. ASSIGNMENT OF CONTRACT The Contractor shall not assign this contract or any part thereof or any monies due thereunder without the prior written consent of the City. 19. SUBCONTRACTING If the Contractor shall subcontract any of the work to be performed under this contract by the Contractor, Contractor shall be fully responsible to the City for the acts and omissions of Contractor’s subcontractor and of the persons either directly or indirectly employed by the subcontractor, as Contractor is for the acts and omissions of persons directly employed by Contractor. Nothing contained in this contract shall create any contractual relationship between any subcontractor of Contractor and the City. The Contractor shall bind every subcontractor and every subcontractor of a subcontractor by the terms of this contract applicable to Contractor’s work unless specifically noted to the contrary in the subcontract in question approved in writing by the City. rev. 2/26/99 -11 - . 20. PROHIBITED INTEREST No official of the City who is authorized in such capacity on behalf of the City to negotiate, make, accept, or approve, or take part in negotiating, making, accepting, or approving of this agreement, shall become directly or indirectly interested personally in this contract or in any part thereof. No officer or employee of the City who is authorized in such capacity and on behalf of the City to exercise similar functions in connection with the performance directly or indirectly interested personally in this contract 21. VERBAL AGREEMENT OR CONVERSATION any executive, supervisory, or of this contract shall become or any part thereof. No verbal agreement or conversation with an,y officer, agent, or employee of the City, either before, during or after the execution of this contract, shall affect or modify any of the terms or obligations herein contained nor entitle the Contractor to any additional payment whatsoever under the terms of this contract. 22. SUCCESSORS OR ASSIGNS Subject to the provisions of Paragraph 18, “Hold Harmless Agreement,” all terms, conditions, and provisions hereof shall inure to and shall bind each of the parties hereto, and each of their respective heirs, executors, administrators, successors, and assigns. 23. EFFECTIVE DATE . This agreement shall be effective on and from the day and year first written above. rev. 2/26/99 -12 - - 24. CONFLICT OF INTEREST The Contractor shall file a conflict of interest statement with the City Clerk in accordance with the requirements of the City’s conflict of interest code incorporating Fair Political Practices Commission Regulation 18700 as it defines A consultant. The disclosure category shall be Category 1: Investment and Real Property. 25. INSURANCE The Contractor shall obtain and maintain for the duration of the contract and any and all amendments insurance against claims for injuries to persons or damage to property which may arise out of or in connection with performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors. Said insurance shall be obtained from an insurance carrier admitted and authorized to do business in the State of California. The insurance carrier is required to have a current Best’s Key Rating of not less than “A-:V” and shall meet the City’s policy for insurance as stated in Resolution No. 91-403. A. Coveraaes and Limits. Contractor shall maintain the types of coverages and minimum limits indicated herein, unless a lower amount is approved by the City Attorney or City Manager: 1. Comprehensive General Liability Insurance. $1 ,OOO,OOO combined single-limit per occurrence for bodily injury, personal injury and property damage. If the submitted policies contain aggregate limits, general aggregate limits shall apply rev. 2/26/99 -13 - separately to the work under this contract or the general aggregate shall be twice the required per occurrence limit. 2. Automobile Liability (if the use of an automobile is involved for Contractor’s work for the City). $1 ,OOO,OOO combined single-limit per accident for bodily injury and property damage. 3. Workers’ Compensation and Employer’s Liability. Workers’ Compensation limits as required by the Labor Code of the State of California and Employer’s Liability limits of $1 ,OOO,OOO per accident for bodily injury. 4. Professional Liability. Errors and omissions liability appropriate to the contractor’s profession with limits of not less than $1,000,000 per claim. Coverage shall be maintained for a period of five years following the date of completion of the work. B. Additional Provisions. Contractor shall ensure that the policies of insurance required under this agreement contain, or are endorsed to contain, the following provisions. 1. The City shall be named as an additional insured on all policies excluding Workers’ Compensation and Professional Liability. 2. The Contractor shall furnish certificates’ of insurance to the City before commencement of work. 3. The Contractor shall obtain occurrence coverage, excluding Professional Liability which shall be written as claims-made coverage. rev. 2/26/99 -14 - 4. This insurance shall be in force during the life of the agreement and any extension thereof and shall not be canceled without 30 days prior written notice to the City sent by certified mail. 5. If the Contractor fails to maintain any of the insurance coverages required herein, then the City will have the option to declare the Contractor in breach, or may purchase replacement insurance or pay the premiums that are due on existing policies in order that the required coverages may be maintained. The Contractor is responsible for any payments made by the City to obtain or maintain such insurance and the City may collect the same from the Contractor or deduct the amount paid from any sums due the Contractor under this agreement. 26. RESPONSIBLE PARTIES The name of the persons who are authorized to give written notices or to receive written notice on behalf of the City and on behalf of the Contractor in connection with the foregoing are as follows: For City: Title Human Resources Director Name Address Ann Cheverton 1200 Carlsbad Village Drive Carlsbad, CA 92008 rev. 2126199 -15 - For Contractor: Title Name Address Consultant Diane Thomas 2010 Main Street, Suite 1050 Irvine, CA 92614-7206 27. BUSINESS LICENSE Contractor shall obtain and maintain a City of Carlsbad Business License for the duration of the contract. 28. ENTIRE AGREEMENT This agreement, together with any other written document referred to or contemplated herein, embody the entire agreement and understanding between the parties relating to the subject matter hereof. Neither this agreement nor any provision hereof may be amended, modified, waived or discharged except by an instrument in writing executed by the party against which enforcement of such amendment, waiver or discharge is sought. It is agreed that all terms and conditions of this agreement are retroactive to July 1, 1999, the date that the work began, and that the work performed prior to execution of this agreement is hereby ratified. The Contractor agrees to provide insurance specified in this agreement, including coverage for work already performed beginning July 1, 1999. rev. 2/26/99 -16 - Executed by Contractor this day of (sign here) dd&L tc j+-- R,wc;g& (print name/title) . ATTEST: By: (sign here) (print name/title) KAREN R. KUNDTZ, Assistant City Clerk (Proper notarial acknowledgment of execution by Contractor must be attached. Chairman, president or vice-president and secretary, assistant secretary, CFO or assistant treasurer must sign for corporations. Otherwise, the corporation must attach a resolution certified by the secretary or assistant secretary under corporate seal empowering the officer(s) signing to bind the corporation.) APPROVED AS TO FORM: RONALD R. BALL, City Attorney BY: A&&wI~ City Attorney /2-9-9f, rev. 2/26/99 -17 - COUNTY OF NAME, TITLE OF OFFICER - E.G., “J/jNE DOE, NOTARY PUBLIC” personally appeared, CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT STATE OF CALIFORNIA > personally known to me (or proved to me on the basis of satisfactory evidence) to be the personw whose name@ is/mubscribed to the within instrument and acknowledged to me that he/&& @@y executed the same in his/h&their authorized capacity(ieej, and that by his/ signature@ on the instrument the person&j, or the entity upon behalf of which the person(@acted, executed the instrument. WITNESS my hand and official seal. OPTIONALINFORMATION TITLE OR TYPE OF DOCUMENT DATE OF DOCUMENT NUMBER OF PAGES SIGNER(S) OTHER THAN NAMED ABOVE - TOWERS, PERRIN, FORSTER & CROSBY, INC. SECRETARY’S CERTIFICATE Re: City of Carlsbad, California Contract I, Kevin C. Young, hereby certify, in my capacity as the duly elected Secretary of Towers, Perrin, Forster & Crosby, Inc., a corporation organized under the laws of the Commonwealth of Pennsylvania, U.S.A. (the “Corporation”), that the resolution set forth below was duly adopted by the Board of Directors of the Corporation and remains in full force and effect on the date of this Certificate; RESOLVED, that the levels of minimum signing authority set forth in the Schedule of Contract Signing Authority presented to the Board, be, and they hereby are, approved; and I further certify that pursuant to the adopted Schedule of Contract Signing Authority, Michael C. Fox is thereby authorized to execute this contract in the normal course of business on behalf of the Corporation. IN WITNESS WHEREOF, I have signed my name and affixed the Corporate Seal at Philadelphia, Pennsylvania, this fourth day of November, 1999. Sworn and subscribed before me, Susan P. Christian, Notary Public of the Commonwealth of Pennsylvania, on November 4, 1999. Notary Public